Analysis on Pricing Model of UBI Auto Insurance in China from the Perspective of Big Data

Abstract

The auto insurance pricing model of UBI in china is a pricing model which offers special terms of premium to those drivers who have safer driving behaviour by evaluating and analyzing the behaviour of drivers and usage data of vehicles. According to document analysis method and comparative analysis method, this research compares the present UBI auto insurance pricing model in China and other countries. As a result, this study finds that pricing the vehicles by internet brings a increasing of premium income and profits, well, a decreasing of loss. Meanwhile, it is advantageous to market economy as it promotes the development of a industry chain, including car parts and services. However, pricing the vehicles by internet still depends on the developed model abroad due to the lack of domestic professionals and IT core system. Hence, comparing with traditional insurance, there is a significant advantage and a prospective future of UBI auto insurance pricing model. However, this UBI model faces challenges which requires it to justifies its development model continuously, matching up the pricing of drivers and vehicles preferably. As a consequence, the UBI model shall be more refinement in China.